Home » nike inc: cost of capital (v 18) nike inc: cost of capital (v 18) hbs case analysis this entry was posted in harvard case study analysis solutions on by case solutions. Nike inc cost of capital case solution, analysis: valuation of nike inc has been made by the portfolio manager of mutual fund management company by using the two approaches which are widely used. Nike case study solutions professor corwin this case study includes several problems related to the valuation of nike we will work through these estimates and your answer to (a), calculate the weighted average cost of capital (wacc) for nike assume a marginal tax rate of 244.
1 |case analysis: nike inc, cost of capital i/ case background - kimi ford- the manager of the northpoint large-cap fund, which invested mostly in fortune 500 companies, weighing whether to buy nike’s stock. Access to case studies expires six months after purchase date publication date: october 10, 2001 this is a darden case studyintroduces the weighted average cost of capital (wacc. Nike inc cost of capital essay introduction kimi ford is a portfolio manager at northpoint group, a mutual-fund management firm she is evaluating nike, inc (“nike”) to potentially buy shares of their stock for the fund she manages, the northpoint large-cap fund. The nike inc cost of capital case study solution contains an 1,100 word answer to the four questions below, a financial analysis in excel that.
2) for long - term debt, nike, inc had issued the bonds in which the cost of debt was calculated by finding the yield to maturity on 20-year nike inc debt with a 675% coupon semi-annually i assumed nike inc to have a single cost of capital since its multiple business segments (shoes, apparel, sports equipment, etc) are not very different. Cost of capital on july 5, 2001, kimi ford, a portfolio manager at northpoint group, a mutual-fund management firm, pored over analysts’ write-ups of nike, inc, the athletic-shoe manufacturer nike’s share price had declined significantly from the beginning of the year. Nike inc (nyse: nke) is one of the world's largest apparel and footwear suppliers as of april 2016, the company had a trailing 12-month revenue of $319 billion and a market cap of $100 billion.
Nike, inc: cost of capital (v 18) case solution & analysis, case study solution by robert f bruner, jessica chan our tutors are available 24/7 to assist in your academic stuff, our professional writers are ready to serve you in services you need. Nike, inc: cost of capital case study help analysis with solution online if you are in search of an expertise help in case study analysis, than this is the right place. The weighted average cost of capital and its importance for nike inc the weighted average cost of capital (wacc) is the average of the costs of a company's sources of financing-debt and equity, each of which is weighted by its respective use in the given situation. Case solution kimi ford, a portfolio manager of mutual fund management firm, was considering buying nike shares for the fund, the north point large-cap fund after analyzing the financial position of the company, kimi forecast showed that the current price of nike share is overvalued at a discount rate of 12 percent.
Custom nike inc cost of capital essay the cost of capital is a term in finance used in reference to the total of a firms fund the funds include both equity and debt capital. Examines nike inc's capital structure in terms of the mix of its financing sources and the ability of the firm to satisfy its longer-term debt and investment obligations approach estimates the value of the firm as the present value of future fcff discounted at the weighted average cost of capital (wacc) financial reporting quality. Of course, there is also another reason not to submit some my ideas in the field of new resources of energy for instance i have to wait to increase of crude oil to $168 or decrease to $33 to be feasible one of my ideas (due to capital budgeting analysis. Nike, inc: cost of capital on july 5, 2001, kimi ford, a portfolio manager at northpoint group, a mutual fund management firm, pored over analyst write-ups of nike, inc, the athletic shoe manufacturer.
Cost of capital case solution pdf may not create carefree reading, but nike inc cost of capital case solution is packed in imitation of necessary instructions, guidance and warnings here is the access download page of nike inc cost of capital case solution pdf. Nike inc: cost of capital nike was founded in 1964 and was formerly known as blue ribbon sports track star bill bowerman and his coach philip knight created blue ribbon sports which later became nike in 1978. We use your linkedin profile and activity data to personalize ads and to show you more relevant ads you can change your ad preferences anytime. Cost of equity – capm model (capital asset pricing model) = 105% used the average beta of 080 with a 590% risk premium, nike capital sources (debt + equity.
The company cost of capital is a useful starting point for setting discount rates for unusually risky or safe projects it is easier too add to , or subtract from, the company cost of capital than to estimate each projects cost of capital from scrape. Introduces the weighted average cost of capital (wacc) provides a wacc calculation, although it has been intentionally designed to mislead students. On the cost side, nike would exert more effort on expense control finally, company executives reiterated their long-term revenue-growth targets of 8% to 10% and earnings-growth targets of above 15% keywords: cost of capital, investment analysis, valuation.
Paying users zone data is covered by get 1 month access to nike inc for $1799, or get full access to whole website for at least 3 months from $4999. Tags capital asset pricing model, corporate finance, financial modeling, weighted average cost of capital, nike inc click to edit the document details share this link with a friend. Product overview on july 5, 2001, kimi ford, a portfolio manager at northpoint group, a mutual-fund management firm, pored over analyst write-ups of nike, inc, the athletic-shoe manufacturer. Nike inc cost of capital case study solution - thanks a lot for you for reading this article relating to this nike inc cost of capital case study solution file, really is endless you get what you are interested in we also trust that the document you down load from our site pays to to you, in the event that you feel this nike inc.